The definition of Confucianism 2
Implications of Confucianism for East Asian accounting 4
The reform of Chinese accounting 5
The influence of Confucianism in Chinese accounting 7
1.) The Government 7
2.) Accounting Ethics 7
3.) Conservatism 8
Japanese Accounting and Confucianism 8
In order to understand the present day accounting methods and principles of China and Japan it is essential to understand the history of both of these nations and focus on the issues that have led to these events. In this paper we will discuss how the influence of Confucianism has directly affected both China and Japan in a cultural and economic sense. After a brief discussion of Confucianism and the history of East Asian accounting we will thoroughly examine the consequences of these nations regimes post 2005. We will discuss how these events have changed the Chinese and Japanese accounting systems of today and how Confucianism is the underlying factor in these reforms.
The definition of Confucianism
Confucianism elaborates on the values of loyalty, filial piety, honesty, benevolence, righteousness, rituals, and truthfulness. This doctrine was developed over 2000 years ago by Confucius, who provided a to guide people for dealing with all types of crisis’s using right moral conduct and the right behaviour in the future (Aiken, 1998). Basically, Confucius provided a framework to identify what is right and glorious, especially for encouraging people continue to achieve their objectives when they face adversity.
Also, he suggested that both the rulers and the ruled could establish certain relations in order to decrease adversarial relationships (Gao, Handley-Schachler, 2003). In the theory there is an emphasis on change, which means everything is changing all the time and even people belong to this dynamic process (Tang, 2000). People will interrelate with each other and cannot live alone. Confucius states that
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